Principles of Information Technology
Principles of Information Technology ITEC 110
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This 41 page Class Notes was uploaded by Myrtis Volkman on Monday October 19, 2015. The Class Notes belongs to ITEC 110 at Radford University taught by Maung Htay in Fall. Since its upload, it has received 53 views. For similar materials see /class/224663/itec-110-radford-university in Management Sciences And Information Technology at Radford University.
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Date Created: 10/19/15
Fundamentals of Information Systems Third Edition Principles and Learning Objectives Ecommerce is a new way of conducting business and as with any other new application of technology it presents both opportunities for improvement and potential problems Identify several advantages of ecommerce Identify some of the major challenges that companies must overcome to succeed in ecommerce and m commerce Describe some of the current uses and potential benefits of mcommerce Identify several ecommerce applications Fundamentals of Information Systems Third Edition Principles and Learning Objectives con nued Ecommerce requires the careful planning and integration of a number of technology infrastructure components Outline the key components of technology infrastructure that must be in place for ecommerce to succeed Discuss the key features of the electronic payment systems needed to support ecommerce Fundamentals of Information Systems Third Edition 3 Principles and Learning Objectives con nued An organization s transaction processing system TPS must support the routine daytoday activities that occur in the normal course of business and help a company add value to its products and services Identify the basic activities and business objectives common to all TPSs Explain some key control and management issues associated with TPSs Identify the challenges multinational corporations must face in planning building and operating their TPSs Fundamentals of Information Systems Third Edition 4 Principles and Learning Objectives con nued Implementation of an enterprise resource planning ERP system enables a company to achieve many benefits by creating a highly integrated set of systems Discuss the advantages and disadvantages associated with the implementation of an ERP system Fundamentals of Information Systems Third Edition An Introduction to Electronic Commerce Businesstoconsumer BZC ecommerce customers deal directly with the organization avoiding any intermediaries Businesstobusiness BZB ecommerce participants are organizations Consumertoconsumer C2C ecommerce participants are individuals with one serving as the buyer and the other the seller Fundamentals of Information Systems Third Edition The ECommerce Supply Chain Supply chain management is a key value chain composed of Demand planning Supply planning Demand fulfillment Fundamentals of Information Systems Third Edition The ECommerce Supply Chain continued Demand manning supniv Hamlin Figure 51 Supply Chain Management Fundamentals of Information Sstems Third Edition The ECommerce Supply Chain con nued Ecommerce supply chain management allows businesses an opportunity to achieve Increased revenues and decreased costs Improved customer satisfaction Inventory reduction across the supply chain Fundamentals of Information Systems Third Edition Mobile Commerce Mobile commerce mcommerce relies on the use of wireless devices such as personal digital assistants cell phones and smart phones to place orders and conduct business Issues confronting mcommerce Userfriendliness of the wireless device Network speed Security Fundamentals of Information Systems Third Edition 10 Mobile Commerce continued Handheld devices used for mcommerce have limitations that complicate their use Wireless application protocol WAP a standard set of specifications for Internet applications that run on handheld wireless devices Fundamentals of Information Systems Third Edition 11 ECommerce Applications Retail and Wholesale Electronic retailing etailing the direct sale from business to consumer through electronic storefronts typically designed around an electronic catalog and shopping cart model Cybermall a single Web site that offers many products and services at one Internet location Manufacturing repair and operations MRO goods and services Fundamentals of Information Systems Third Edition 12 Manufacturing To raise profitability and improve customer service many manufacturers move their supply chain operations onto the Internet Electronic exchange an electronic forum where manufacturers suppliers and competitors buy and sell goods trade market information and run back office operations Fundamentals of Information Systems Third Edition 13 Mnufacturing continued Shuppers mi Manulaclmer39s bank Supplier s bank r bank Figure 53 Model of an Elec cspgpnic Exchange Fundamentals of Information Systems Third Edition Marketing Market segmentation the identification of specific markets to target them with advertising messages Technologyenabled relationship management use of detailed information about a customer s behavior preferences needs and buying patterns to set prices negotiate terms tailor promotions add product features and othenNise customize the entire relationship with that customer Fundamentals of Information Systems Third Edition 15 Investment and Finance Online stock trading Portfolio tracker Online banking Electronic bill presentment Fundamentals of Information Systems Third Edition 16 Ecommerce Technology Infrastructure and Development Server operatmg system Web server hardware I Figure 54 Key ECommerce Technical Components Fundamentals of Information Systems Third Edition 17 Hardware Storage capacity and computing power required of the Web server depends on Software that will run on the server Volume of ecommerce transactions Web site hosting Fundamentals of Information Systems Third Edition 18 Software Security and identification Retrieving and sending Web pages Web page construction Static Web page Dynamic Web page Fundamentals of Information Systems Third Edition 19 Software continued Ecommerce software must support Catalog management Product configuration Shoppingcart facilities Fundamentals of Information Systems Third Edition 20 Software continued 95 Q 3 g a 05an mm gm 6 b your shopping bag mm 1 ulrnnlring mll up paw m quotFan mmmwmw M hag mm w my m uVumlhvuifl39 mwnizm 1 shlp m Me mm M v sw urdusubtum is i w 7777 7 innm Figure 55 Electronic Shopping Cart Fundamentals of Information Sstems Third Edition Electronic Payment Systems Digital certificate an attachment to an email message or data embedded in a Web page that verifies the identity of a sender or a Web site Electronic cash an amount of money that is computerized stored and used as cash for ecommerce transactions Fundamentals of Information Systems Third Edition 22 Electronic Payment Systems con nued Electronic wallet a computerized stored value that holds credit card information electronic cash owner identification and address information Credit card Charge card Debit card Smart card Fundamentals of Information Systems Third Edition 23 An Overview of Transaction Processing Systems Provide data for other business processes Management information systemdecision support system MlSDSS Specialpurpose information systems Process the detailed data necessary to update records about the fundamental business operations Include order entry inventory control payroll accounts payable accounts receivable and the general ledger Fundamentals of Information Systems Third Edition 24 An Overview of Transaction Processing Systems continued Information Less More Less More Special Information Sophistication and Systems Decision Input and complexity Routine 7 f v r d support output 0 processmg an MiSDSS l analysis Data More Less More Less Figure 56 TPS MISDSS and Special Information Systems in Perspective Fundamentals of Information Systems Third Edition 25 Traditional Transaction Processing Methods and Objectives Batch processing system method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit or batch Online transaction processing OLTP computerized processing in which each transaction is processed immediately without the delay of accumulating transactions into a batch Fundamentals of Information Systems Third Edition 26 Traditional Transaction Processing Methods and Objectiyes continued Data entry input ibatchedl mmulam in Batch ramssin transactions P 9 immediak t Cenlmtmmputer rrrrr sin Ipruzassingl P 9E n l aaaaaaa un sacn 39 i quotii l T aaaa nai 39 39 bl Dnline transaction processing Figure 57 Batch Versus Online Transaction Processing Fundamentals of Information Systems Third Edition 27 Transaction Processing Activities TPSs Capture and process data that describes fundamental business transactions Update databases Produce a variety of reports Transaction processing cycle the process of data collection data editing data correction data manipulation data storage and document production Fundamentals of Information Systems Third Edition 28 Transaction Processing Activities continued Data Data maniputatlun storage 39 Guod daa Data Data TPS cotleclion editlng reports Bad data Data correction Figure 58 Data Processing Activities Common to TPSs Fundamentals oflnformalion Systems Third Edition 29 Transaction Processing Activities con nued Data collection Should be collected at source Should be recorded accurately in a timely fashion Data editing Data correction Fundamentals of Information Systems Third Edition 30 Transaction Processing Activities con nued Data manipulation Data storage Document production and reports Fundamentals of Information Systems Third Edition 31 Basic TPS Applications 1 Li ii4 r 39 a 1 i 1 45 i i i i i39r39ifui i 3 H i i 1 39 Order entry Inventory control Eraw materi 39 Budget 0 Sales configuration 3 5 puking matf ri als39 Spare e Accounts receivable 39 Shipment planning parts39 and SUPPLIES Payroll I Purchase order processmgi Inventory control finished product Receiving Asset management 39 Invoicing and billing Accounts payabLe General ledger Customer interaction I Routing and scheduling Table 54 Systems That Support Order Processing Fundamentals of Information Systems Third Edition 32 Order Processing Systems Order entry Sales configuration Shipment planning Shipment execution Fundamentals of Information Systems Third Edition 33 Order Processing Systems continued Inventory control 0 Invoicing Customer relationship management Routing and scheduling Fundamentals of Information Systems Third Edition 34 Order Processing Systems continued lnvorce Products Customer order In person or via maii phone EDL or Internet Order entry sates con guration inventory status Orders Ptanned inventory Shipment Shlpmems Routing control planning Picking list Planned shipments and routes Stock no Quantity picked Shipment execution Schedulan Shipped orders Invoicing Figure 510 Order Processing Systems Fundamentals of Information Systems Third Edition 35 Purchasing and Accounting Systems Purchasing transaction processing systems include Inventory control Purchaseorder processing Receiving Accounts payable Fundamentals of Information Systems Third Edition 36 Purchasing and Accounting Systems con nued Accounting transaction processing systems include Budget Accounts receivable Payroll Asset management General ledger Fundamentals of Information Systems Third Edition 37 Purchasing and Accounting Systems con nued Customer order request Dr uer eniry order configuratton Inventory status Raw matertats Fmrstred product Sh V H L H Packing materrats 1 7 4 r inventory mne39 p d H 3 Spare parts nven my Purchase order Inventory status report Items and quantities picked hr each order request r I 39Chdse Purchase order bhrpment exerutton order Products processmg Purchase order Materials and INVOICE Invoice h Invoicing Recervmg Amounts owed by customer Receivtng nutlce Emptoyee PaYmerit Accounts A p m Chem yamable noun 3 pays 9 Time cards Paychecks Amounts owed by customers Amounts owed by company Amounts paid by customer Amounts p rd by company Shipped orders Labor costs Payroll Gene39ai LEdge39 an Budget Figure 511 Integration of a Firm s TPSs Fundamentals of Information Systems Third Edition 38 TPS Control and Management Issues Business continuity planning identification of the business processes that must be restored first in the event of a disaster and specification of what actions should be taken and who should take them to restore operations Fundamentals of Information Systems Third Edition 39 Transaction Processing System Audit Does the system meet the business need for which it was implemented What procedures and controls have been established Are these procedures and controls being used properly Are the information systems and procedures producing accurate and honest reports Fundamentals of Information Systems Third Edition 40
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